Why The New York Times Outperformed the Market in November

In a month marked by volatility in the broader stock market, The New York Times (NYSE: NYT) emerged as a standout performer, outpacing the S&P 500 despite a mid-November selloff driven by concerns over artificial intelligence (AI) investments. By November 28, NYT shares had climbed to $64.95, up from $64.50 on November 20, while the S&P 500 closed the month at 6,849.09-a 0.5% gain after a dramatic rebound fueled by improved employment data and expectations of Federal Reserve rate cuts. This outperformance was not accidental but a direct result of the company's sustained digital transformation and a Q3 2025 earnings report that underscored its financial resilience.

A Digital Renaissance Drives Subscriber Growth

The New York Times' ability to adapt to the digital age has been a cornerstone of its recent success. In Q3 2025, the company added 460,000 net new digital-only subscribers, bringing its total to 12.3 million-a figure that now includes bundled subscriptions across its diverse content offerings, such as Cooking, Games, and The Athletic. This bundling strategy has proven critical: over half of subscribers now opt for multiproduct packages, driving an increase in average revenue per user (ARPU) to $9.79 for digital-only subscribers.

The shift to digital has also reshaped the company's revenue streams. Digital advertising revenue surged 20.3% year-over-year to $98.1 million, while subscription revenues from digital-only products rose 14% to $367.4 million. Print subscription revenues, meanwhile, declined by 3%, reflecting ongoing challenges in home delivery and single-copy sales. Yet the company's leadership remains confident, with CEO Meredith Kopit Levien emphasizing that "What we do has never been more important or more valuable".

Earnings Outperformance and Margin Expansion

The financial implications of this digital pivot are evident in The Times' Q3 results. Revenue reached $700.8 million, exceeding expectations of $686.77 million, while adjusted operating profit jumped 26.1% year-over-year to $131.4 million. This performance translated into a 18.7% adjusted operating profit margin, up from 10.9% in the same period the previous year. Analysts attribute this margin expansion to the company's focus on high-margin digital subscriptions and cost efficiencies in content delivery.

The stock's valuation, however, remains a point of debate. Shares traded at $57.61 as of November 2025, below the discounted cash flow (DCF) fair value estimate of $91.51. While the price-to-earnings ratio of 29.3x is significantly higher than the US media industry average of 16.1x, investors appear willing to pay a premium for the company's expanding margins and consistent profitability.

AI and the Future of Content Innovation

The New York Times has also leveraged AI to enhance its competitive edge. In November 2025, the company announced AI-powered features across its platforms, including personalized content recommendations and automated video production. These innovations align with broader industry trends, such as President Trump's executive order to create a federal AI platform for scientific research and the surging valuations of AI-driven companies like Nvidia. By integrating AI into its operations, The Times is not only improving user engagement but also positioning itself to capitalize on the next wave of digital advertising and subscription growth.

Looking ahead, the company projects a 13–16% increase in digital-only subscription revenue for Q4 2025, with digital advertising revenue expected to grow by mid- to high teens. These forecasts, combined with a long-term goal of reaching 15 million subscribers by 2027, suggest that The Times' digital transformation is far from complete.

Conclusion: A Model for Media Resilience

The New York Times' outperformance in November 2025 reflects a broader narrative of media companies adapting to a digital-first world. By prioritizing subscriber growth, diversifying content offerings, and embracing AI-driven innovation, The Times has demonstrated that traditional media can thrive in the 21st century. As the stock continues to trade at a premium, investors must weigh its strong fundamentals against the risks of a slowing advertising market and high valuation multiples. For now, the company's ability to convert digital momentum into sustainable profits appears to be the key to its market-beating performance.